Birchbox Raises $15 Million

Last Tuesday Birchbox has received $15 million from Existing Investors. Launched in 2010, New York-based Birchbox is beauty subscription retailer offers consumers a unique way to discover, sample, shop and learn about the top products and brands in the market. Birchbox ships boxes of beauty samples for $10 a month and it has not been profitable for the company so far. The company has been suffering from money shortage for quite a while. This new round of money will give them a chance to prove their potential to the investors.

According to co-founder and CEO Katia Beauchamp, the $15 million infusions will tide the company over as it attempts to sprint towards profitability.“Obviously, 2016 has been a very hard year from many perspectives,” she told Recode. “But the idea is to be in control of our own destiny, and now we’ll be able to become profitable very soon.” Via Fortune.Previous Birchbox’s funding round was $60M, which valued at $485M. The company has been suffering from money crisis and that’s why they had to go through the budget cuts and multiple layoffs, including around 30 people in June 2016. It has also reported that Birchbox did the Internet Retailer-estimated $144 million in sales last year, up 50% from $96 million in 2014.